the current financial situation of the Mauritius Post Ltd., he will, for the benefit of the House, obtain in…
(No. B/520) Mr J. Edouard (Fourth Member for Rodrigues) asked the Minister of Information Technology, Communication and Innovation whether, in regard to the current financial situation of the Mauritius Post Ltd., he will, for the benefit of the House, obtain information as to the impact thereof on the employees, indicating the measures being envisaged to address same. Madam Speaker: Thank you.
Madam Speaker, I wish to thank the hon. Member for this question and with your permission I wish to recall my responses to PQs B/424, B/515 and B/434 where I referred to the financial situation of Mauritius Post Ltd. Madam Speaker, the MPL is indeed facing serious financial difficulties and cash flow pressures and I am informed by MPL that for the year ending 30 June 2025, it recorded an operating loss of Rs282 million. At the same time, shareholders deficit stood at Rs1.7 billion while the pension liability amounted to Rs2.6 billion. Moreover, the company has fully utilised its overdraft facility of Rs177 million to support its day-to-day operations. Additionally, it has encashed a fixed deposit of Rs200 million to meet its financial obligations amongst others. This situation is already impacting employees both in Mauritius and in Rodrigues. It is public knowledge that payment of sick leave benefits dues in February 2026 was actually postponed to March 2026 which was eventually paid three days later than scheduled. Madam Speaker, in order to address this situation, Mauritius Post is implementing in a phase manner a series of short and medium-term strategic measures both in Mauritius and in Rodrigues aimed at stabilising the organisation and improving its cash flow position. In terms of human resources management, emphasis is being laid on improving productivity and efficiency through internal reorganisation, capacity building and redeployment where necessary both in Mauritius and in Rodrigues. At the operational level, revenue enhancing measures have been introduced including an increase in postal tariffs, the revision of rates for postal services and a review of commissions charged to organisations. At the same time, the cost optimisation initiatives are being pursued such as a freeze on recruitment and promotions and tighter control over overtime payments. Furthermore, the company is accelerating the development of its e-commerce and parcel related services through partnerships with international entities. Additional initiatives include the expansion of digital and advertising services, the rental of unused space in post offices, increased digitalisation of customer interfaces and a review of operational processes to enhance efficiency and service delivery. In conclusion, in the medium to long term, the company is also envisaging structural reforms through strategic partnerships and the exploration of new markets with a view to diversifying its activities and ensuring its sustainability in an increasingly digitally and competitive environment. Thank you, Madam Speaker.
Thank you. Yes. Yes, one question.
Thank you. May I ask the hon. Minister what is being done to address delays in the payment of salaries?
Indeed, there was a delay in the payment of salaries one time, it was a one-off event. We do not expect to have further such events recurring. However, all the measures that I have mentioned in my response are collectively contributing to ensure that such events do not recur. We are all very well aware that all post offices across the globe are undergoing serious challenges and Mauritius is no exception and we face the same situation. We actually deplore the omission of the previous government in terms of relooking at what Mauritius Post Office could have done back then – things that were not done. This is why today, this Government is having to pay back for the omissions of the previous government and this is very, very sad for the employees of the Mauritius Post. Really sad. Thank you, Madam Speaker.
Yes, hon. Edouard, you are alright? Hon. François!
Thank you, Madam Speaker. On behalf of the employees in Rodrigues, a basic question to reassure them. May I ask the hon. Minister whether those who are to retire soon are still eligible for their lump sum, pension scheme and other retirement benefits entitlements?
Thank you for this supplementary, hon. Member. The employment contracts of different employees for Mauritius Post stipulate different conditions of employment and the conditions of employment are being applied as per those statutory provisions. Thank you.
Thank you. Yes, one more.
Yes, if you allow me. As you are talking about the post service, may I ask the hon. Minister in relation to the postal services in Rodrigues whether he is aware of the situation prevailing at one of the sub offices, I seize this opportunity to raise that. At Malabar which is no more suitable to cater for the high volume of parcels thereat, will he be looking into it so we can relocate and find a wider space for this post office at Malabar, Rodrigues.
Thank you, hon. Member. Your question actually confirms my previous statement with regard to the lack of actions and the omissions of the previous government. This, Madam Speaker, should have been taken onboard much earlier and we are experiencing an influx of parcels – which is actually positive because this is promising to the fact that we will be able to successfully implement the reorganisation and the business review plan of Mauritius Post Ltd. So, certainly we will give effect to the point raised by the hon. Member. Thank you, Madam Speaker.
Thank you.
So, you will look at point Malabar issue.
Yes.
Thank you very much. On this, I will raise for one and a half hour. At 1.00 p.m., the Sitting was suspended. On resuming at 2.32 p.m. with the Deputy Speaker in the Chair.
Please be seated! CONSTITUENCY NO. 8 – WATER PIPE LAYING WORKS – TIME FRAME